MikefromDelaware said:
You make some excellent points. What I don't get, is why does Disney keep all those AM stations if no listens or the sales of all the Disney stuff doesn't benefit by Radio Disney on AM? Think of all the red ink they'd save which would make their profits higher if they sold off all those AM stations.
According to the article, 22 million people over the age of 6 listen to Radio Disney. So "if no one listens" really doesn't apply.
And the overhead is pretty low at each station...a GM, a couple of sales folks, a production guy...maybe someone to do traffic...though that could be hubbed...the rest just comes down from the satellite. So they could in fact be making a buck or two on a pure broadcast model.
Disney itself is the beneficary of any profit on the stations it owns, and it gets syndication fees from the Radio Disney stations owned by other broadcasters, as well as the revenue from national advertising from sponsors other than Disney. It's probably black ink.
But more importantly, I think the Mouse views Radio Disney as a promotion expense for all its other operations (Disney Channel, ToonDisney, music, movies, parks, resorts, cruise lines). It's a 24/7 promo that reaches their target audience...kids who want all things Disney and moms who have the money to buy them (if only to quiet the pleas from the back seat after every mention of Disney World/Disneyland/Hannah Montana/Demi Lovato and the latest movie "on DVD and Blu-Ray Tuesday!") and are grateful that someone has created (largely) inoffensive programming for their children.
In terms of reach and frequency, an equivalent amount of advertising would probably cost a lot more.
And, unlike most formats, a new crop of listeners discovers the station every day, and will as long as there are kids and Disney is a brand they like.
As to whether Radio Disney helps the AM band by bringing younger listeners: No.
My kids were rabid Radio Disney listeners...but there was nothing else on the AM band they cared about. And when they hit the age where "Disney" was no longer cool (it's like falling off a cliff...happens over lunch somewhere around 12 or 13)....that was that. Off to alternative and CHR on FM. Occasionally, when everyone else is in a stopset, one of them will punch the button to AM, dial up Radio Disney and say "did it always sound this crappy?"...and go back to FM.
But for 8 or 9 years, they were there...hearing all the Disney acts of the moment along with an occasionally inspired mix of oldies (Elvis and Queen). Old or new, AM or FM, mono or stereo, they were too young to care...it just entertained them.